More Detroits Are on the Way

Even as pension bombs tick, cities and states still borrow far beyond their means.

The most significant step taken after New York City's near-bankruptcy in 1975 was to curb creative-accounting practices. How was that accomplished? Through a state requirement that the city balance its budget in accordance with generally accepted accounting principles. The city has not had a fiscal crisis since.

So it's not surprising that since the city's new mayor, Bill de Blasio, released his first budget last week, there's been intense public debate involving the comptrollers of both the city and the state about...